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FSU researchers receive grant to study risk exposure of Citizens Property Insurance Corporation

Florida State University’s Florida Catastrophic Storm Risk Management Center with the College of Business has received a $265,696 grant from Citizens Property Insurance Corporation to study its business. 

The project will explore ways Citizens can reduce its exposure to losses and expand the private residential property insurance market in FloridaThe grant will also fund the study of reducing and limiting rate increases and potential tax increases for Floridians.

Jack Nicholson, research faculty and director, Florida Catastrophic Storm Risk Management Center.
Jack Nicholson, research faculty and director, Florida Catastrophic Storm Risk Management Center.

“The larger Citizens becomes, the greater the potential tax burden on all Florida policyholders,” said Jack Nicholson, the center’s director. 

Citizens is a state of Florida-controlled residual residential property insurer. Itinsures homes, including mobile homes, apartments and condominiums in situations where policyholders cannot otherwise find affordable insurance in the private market. Citizens is financed with premiums but can charge multi-year assessments to a broad range of property and casualty policyholders in Florida to assist in financing large losses. 

In recent years, Citizens has reduced its size as private insurers have been willing to take certain policies from the company. But, given the hurricanes in recent years and recent market turmoil, it is expected that Florida insurers might have to cut back on their number of insured. If this scenario plays out, Nicholson said, Citizens policy count and exposure could surge with thousands of new policies. 

Joining Nicholson on the research team are Cassandra Cole, the Dr. William T. Hold Professor in Risk Management & Insurance and chair of the Department of Risk Management/Insurance, Real Estate and Legal Studies; Charles Nyce, Robert L. Atkins Associate Professor of Risk Management and Insurance; and Patricia BornPayne H. and Charlotte Hodges Midyette Eminent Scholar in Risk Management & Insurance. 

The Florida Catastrophic Storm Risk Management Center is housed in The Dr. William T. Hold/The National Alliance Program in Risk Management and Insurance Program in the Florida State University College of Business.

About the College of Business

Founded in 1950, the College of Business is one of the nation’s youngest business schools, yet its reputation for excellence has helped it become one of the largest in the nation with more than 6,100 students. Consistently ranked as a top business school by U.S. News & World Report, virtually every program is ranked in the Top 30 of public universities, most are in the Top 25, and many are in the Top 10. 

The college boasts 122 distinguished full-time faculty members, including one Marie Krafft professor, eight eminent scholars, one university-named professor and 26 endowed professors. Accredited by the AACSB, the college offers eight undergraduate degrees (BS) with 10 majors, and its graduate program offerings include six master’s degree programs (MAcc, MBA, MS-BA, MSF, MS-MIS and MS-RMI) and seven majors at the doctoral level (Ph.D.). The college also is home to nine research institutes and centers.